Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 40-year veteran tax professional Robert D Flach.

Monday, December 11, 2006

NEW DEDUCTION FOR PMI

The tax bill extending popular tax breaks through 2007 that was passed early Saturday morning apparently also provides for a deduction for PMI premiums on Schedule A.

PMI – Private Mortgage Insurance – is usually required when you buy a home with less than 20% down.

It appears that this new itemized deduction will only apply to PMI paid on mortgage insurance contracts issued in 2007. It will be phased out as AGI goes from $100,000 to $110,000 ($50,000 to $55,000 for married taxpayers filing separately).

I will be posting more on this, and the other provisions of the bill, on the FEDERAL TAX UPDATE Page at www.robertdflach.net once it has been signed by George W.

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